04/08/2020 - 15:49

Carnavale in gold buy

04/08/2020 - 15:49

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Carnavale Resources is adding gold to its portfolio of projects after securing the option to buy a stake in tenements owned by a private Western Australian company.

Carnavale in gold buy
Carnavale is buying a stake in Western Resources' Kookynie gold project in the Yilgarn Craton. Photo: Carnavale Resources

Carnavale Resources is adding gold to its portfolio of projects after securing the option to buy a stake in tenements owned by a private Western Australian company.

Carnavale, which owns the Grey Dam and Mt Alexander nickel-cobalt projects in WA, says it will acquire an 80 per cent interest in Western Resources’ Kookynie gold project in the Yilgarn Craton.

The deal includes three tenements covering about 21 square kilometres and is centred within the Kookynie gold mining camp, which has produced more than 650,000 ounces of high-grade gold since the 1890s.

After completing its 28-day due diligence, Carnavale can exercise its option to acquire the Kookynie project for $100,000 cash, as well as issue 37.5 million company shares to Western Resources.

Carnavale will also pay Western Resources a further $250,000 cash and issue another 50 million shares, with the overall deal valued at around $962,500.

Western Resources will maintain a 20 per cent-ownership of the Kookynie project, which Carnavale will free carry towards a final feasibility study. That includes completing a drill program before May 3 next year.

Carnavale chairman Ron Gajewski said recent exploration success in the Kookynie region proved the area to be underexplored.

He also said the company was repositioning itself as a gold and nickel-focused explorer.

Carnavale closed up 40 per cent on the ASX today, with its shares trading at 0.7 cents.

Fellow explorer Indiana Resources is acquiring 14 exploration licences and one mining licence in the Central Gawler Craton – covering about 2,660 square kilometres – through its acquisition of Adelaide-based Patron Resources.

Indiana, which is currently developing projects in Mali and Tanzania, says the Central Gawler Craton has the potential for discovery of significant gold projects..

Chairman Bronwyn Barnes said the acquisition was a strategic and advanced exploration package, with multiple drill-ready targets.

“We are going to move quickly to target those areas that demonstrate strong potential for moderate to high-grade gold opportunities,” she said.

Indiana will pay an upfront cash payment of $30,000 to Patron, followed by a $15,000 rehabilitation bond for exploration work.

Further, Indiana will issue 18 million shares to Patron and pay an additional $95,000 cash to complete the transaction.

Patron will also receive two tranches of performance shares, which will be converted into ordinary shares in Indiana on a 1-for-1 basis.

Subiaco-based Indiana closed up 15 per cent on the ASX today, with its shares trading at 4.6 cents each.

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